LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

April 29, 2003

TO:	Honorable Joe Nixon, Chair, House Committee on Civil Practices
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB3490 by Raymond (Relating to resolution of disputes arising under construction contracts.), As Introduced

No significant fiscal implication to the State is anticipated.

Based on the analysis of the Texas Department of Transportation, the Office of Court Administration, the Building and Procurement Commission, the Department of Housing and Community Affairs, and the Parks and Wildlife Department, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.

 

The bill would take effect September 1, 2003.

Local Government Impact

No significant fiscal implication to units of local government is anticipated. The bill provides the option to local governmental entities of opting out of using a dispute resolution board on construction projects by including a provision in a contract that states that the use of dispute resolution was actively considered and rejected. If a political subdivision chose to utilize a dispute resolution board, the costs would be included as a capital expense in the construction of a project.

Source Agencies:	212 Office of Court Administration, Texas Judicial Council, 303 Building and Procurement Commission, 332 Department of Housing and Community Affairs, 601 Department of Transportation, 802 Parks and Wildlife Department
LBB Staff:	JK, GO, RT, MW, KG